St. Paul daily globe., 1887-05-16
WALL STREET ROMANCES.
Events in the Lives of Two Well-Known
Operators Who Rose From 0bscurity
to Wealthy E1ninence.
The Shrewd Manner in Which Henry S.
Ives Got Control of the Mutual Union
Telegraph Stock.
How His Partner, Stainer, Captured the
American Note Company and Made
Clews and Cooke Hustle.
Both We're Knocked Out by the Board Of
Governors, But They Are Still
in the Ring.

Both We're Knocked Out by the Board of
Governors, But They Are Still
in the Ring.
| Special to the Globe.
NEW York, May 15.-Henry S. Ives
| has been the weeks bone of contention
in the stock exchange. The fact that
| three of four of the governors of the eX-
change who voted to admit Mr. Ives
representative to the floor were defeated
on that issue for reelection, does not
necessarily show that Ives is univers-
ally unpopular. He has his friends and
admirers, and some of the latter cordi-
ally detest him. The actual presence
OF his representative, Mr.. Doremus, on
the floor is enough to keep alive the
antagonism, even if it were supposed
that Ives & Co. would never engage in
any great stock jobbing scheme; but
for that matter, everybody is Interested
to see which way the young concern
will jump next. For since Ives dawned
so suddenly en- the financial
world. three years ago, he has kept up
| a continuous series of operations of a
brilliant and audacious character. In
| personal appearance Mr.. Ives resembles
a recent graduate from an Episcopal
theological seminary. He has a fair,
| fresh complexion, which makes most
men think him about % years old; in
| TACT he is Just 30. His dress is Scrupu-
louSly neat, but his Prince Albert coat.
high collar, gOled-bowed eyeglasses and
thin, red side-whiskers combine with a
mild and benevolent expression to make
clerical picture; he would be taken
much more quickly for '.lamb" on the
street waiting to be shOrn than for one
who has successfully welded the clip
| ping shears on the very governors of the
| eXchage.
IHES' MASTER STROKE.
| The event that developed noted op-
! orator from an Obscure clerk was an
OutgrOwth of the amalgamatiOn of the
Mutual Union and Western Union Tele-
| graph companies. Incidental to that
| transaction, of course, there was vast
amount of stock transferring, and pretty
soon nearly all Mutual Union stock dis
appeared. having been converted on the
terms of the amalgamation contract into
Western Union. But, as might natur-
ally happen in the case of such great
number of shares. there was small
number of shares listed as Mutual Union
that were not transferred. There was
| 10 particular hurry about it, and the
shares-1,100 in round numbers-were
just as valuable as if they had been ex-
changed for the amalgamated stock.
One day the secretary of the exchange
posted notice conveying the infOrma-
ton to the brokers that there vet
remained these LOO shares of
listed Mutual Union nOn-transferred.
This news was available to
everybody, but no one paid
any attention to it. Ives, hOwever-an
ordinary clerk who had made little
money by shrewd and lucky following
| the tide of big dealS-thOught he saw
| fortune i'll it, and, when he had assured
| himself that no one else was struck by
the same idea-in other words, that no
one was buying Mutual Union-he went
| into the market and bought the entire
| lot at low figure. 1t was all done in an
| afternoon, and in the evening Ives plot
| ted. 1t must be clear to all that he was
| the master of the market so far as Mu-
tual Union was concerned; but the
| problem was how to make the situation
profitable? If nobody wanted the stock
how was he to sell it at an advance?
Ives concluded to compel the members
| VI lliC SACiitlliSC W Duy IL,
AND THIS IS HOW HE DID IT.
| He had friend who drove an express
| business in Newark. This friend he in
| Structed to go to some brokers' office
| and give an order to sell 100 shares of
| Mutual Union ''short." The express
| driver understood stock operations and,
like Ives himself, was small trader.
| He went to broker with whom he had
| traded and gave the order. The broker
! did as most brokers dO-sold the stock
and waited for the price to go down be-
| fore buying in to cover his sale. The
effect of this little transaction was to in
! fluence many others to sell Mutual
Union ''short." But presently, when
the traders looked about for the stock
that they might get it and deliver to
their customers, behold! there was none
on the market. Mr.. Ives broker had
fast. Now the most inexperienced
man can see what a fix the
other brokers were in. They
had by selling ''short'' agreed to de-
liver various blocks of Mutual Union to
their customers at stipulated price,
say 40. This contract they were bound
to fulfill, even should they nave to paw
ten times as much for the stock as they
received. If they failed to do it, down
they went. Bidding, therefore, became
extremely lively all at once for Mr..
Ives Mutual Union. He held it for a
wret King figure, and those who were
caught had to take it at his figures or
go out of business. So much can be
done by q complete corner in small
stock. Among those who were taken
in were several governors of the eX-
change. They were very wroth. Not
the least singing feature of the matter
was the fact that experienced operators
had actually been beaten by an insig-
nificant upstart. A howl of ''conspi-
racy!" went up at once, and before the
purchasers of Ives stock had called on
him to deliver, the governors decided
to investigate the transaction. They
summoned Ives to appear before them
and explain his methods. Now Ives
was
NOT AMENABLE TO THE GOVERNORS.
They have absolute power over men,
bers of the exchange, but none what
ever over outsiders. Nevertheless, Ives
how he did. The broker TO whom his
express driving friend gave the fatal
order. declared that the express driver
promised to deliversnthe 100 shares of
stock that he wanted to be sold. The
express driver insisted that he said no
such thing. The governors believed the
broker, declared the whole thing con-
spiracy, and promulgated decree to
the effect that all bargains connected
| with the affair were off" So the bit
ten ones were not obliged to pay young
Mr. Ives for his Mutual Union, and he
tad to sell his shares as best he coulG.
But he was not discouraged, and went
Oh operating and did many astonishing
things, in most of which he succeeded.
and be capped the climax Of his audac-
Isity by the figure he cut recently in the
Baltimore IL Ohio deal,